Best High-Yield Savings Accounts of 2023

*Rates and APYs are subject to change. All information provided here is accurate as of June 1, 2023.

A high-yield savings account offers an annual percentage yield (APY) that's significantly higher than a traditional savings account.

Typically, interest on a high-yield savings account is compounded daily and credited monthly. This feature makes such an account an excellent option for both short- and long-term goals — be it buying a laptop, saving for a down payment on a house or otherwise.

Here's a list of the best high-yield savings accounts on the market, and what to look for when choosing one.

Our Top Picks for the Best High-Yield Savings Accounts

• Discover - Best High-Yield Savings Account Overall
• CIT Bank - Best High-Yield Savings Account with a Minimum Deposit
• mph.bank - Best Online Bank for High-Yield Savings Accounts
• Ally Bank - Best High-Yield Savings Account with Savings Tools
• My Banking Direct - Best Regional Bank for High-Yield Savings Accounts
• Varo - Best High-Yield Savings Account and Checking Combination

Best High-Yield Savings Accounts Reviews

Each company’s annual percentage yield (APY) is accurate at the time of this publication, but they may vary according to the rates set by the Federal Reserve. None of our top picks have a monthly maintenance fee.

Discover is best known for its credit card offerings, but the company also offers a top-notch online savings account with a competitive APY through its banking arm, Discover Bank. Interest compounds daily and pays out monthly.

Discover doesn’t charge fees for excessive withdrawal, stop payment orders, insufficient funds or monthly maintenance. There's no monthly balance requirement, either.

You can access all your Discover accounts, view account activity, make mobile deposits and transfer money using the mobile app. You can also deposit money into your Discover Online Savings account by online transfer, wire transfer, direct deposit or mail-in check.

You can also transfer funds electronically to other Discover accounts, like the Discover checking account, and quickly withdraw cash from any of the company's 60,000+ surcharge-free ATMs nationwide.

CIT Bank’s Savings Connect account is our top pick among high-yield savings accounts that require a minimum deposit. For one, after an initial $100 deposit is made, there's no minimum balance to contend with. CIT Bank doesn’t charge monthly maintenance fees, either.

CIT operates without physical branches, but clients can chat with a customer service rep over the phone from Monday through Saturday. Customers can also use the bank’s mobile app to check their transaction history, transfer funds and make mobile check deposits.

Mph.bank, a branch of Liberty Savings Bank, offers five account choices. Its newest savings account — the Future account — pays competitive interest on your balance. There are no overdraft fees, no monthly fees and no minimum balance required to open the account.

Additionally, while some banks lower APY rates for accounts with $100,000 or higher, mph.bank does not. Any balance — no matter how high or low — qualifies for the highest APY.

Mph.bank also offers an easy-to-use mobile app with a personalized dashboard. From here, you can see all your finances on one page, view your credit score and report and access your statements 24/7. Online help and live chat are also available.

Ally Bank offers customers an easy way to organize their money via its “buckets” system, which users designate for specific savings goals. Customers can also tap Ally's multiple automatic transfer feature — aka “boosters” — to grow their savings.

• The Round-ups booster rounds up users' checking account debits to the nearest dollar and deposits the remaining balance into their savings account.
• The Surprise Savings booster analyzes users' spending patterns to identify areas where they could potentially save more, and then automatically transfers those funds (from any linked financial institution) to their Ally high-yield savings. Transfers are limited to three per week and always under $100.

All of Ally’s "boosters" are customizable and optional, meaning they can be turned on or off at any time.

My Banking Direct offers a high-yield savings account with a competitive annual percentage yield and no monthly fees. You need to make an initial deposit of $500 to open an account, but after that, the required minimum balance is only $1. All of My Banking Direct's high-yield savings accounts are eligible for the highest annual percentage yield available, regardless of the user's balance.

Mobile deposits can be made using the app, and you can easily transfer funds from other accounts or set up recurring deposits. Still, you can't withdraw funds from your high-yield savings account through an ATM, since My Banking Direct doesn’t offer a debit card for this product. Checks aren’t available either, but you can transfer funds to other accounts or contact the bank to process a withdrawal.

Bundling a high-yield savings account and a checking account from Varo comes with several benefits.

Through “Save Your Pay,” customers can designate a percentage of their checking account direct deposit to be automatically transferred to their savings account. "Save Your Change,” another key feature, rounds up checking account transactions to the nearest dollar and deposits the remaining balance into users' savings account.

There are no monthly fees or minimum balance requirements for both high-yield savings and online checking accounts, and there’s no minimum deposit required to open either account. Customers who set up direct deposits to a Varo savings account totaling $1,000 or more are eligible for a higher annual percentage yield.

Other High-Yield Savings Accounts We Considered

Bask Bank

Bask Bank is the digital bank of the Texas Capital Bank, a brick-and-mortar bank founded in 1998. There’s no minimum deposit to open this account, and Bask requires no minimum balance and doesn’t charge any monthly fees.

Why Bask Bank didn’t make the cut: The APY offered by the Bask Interest Savings Account is not as competitive as our pick for Best Online Bank for High-Yield Savings Accounts.

Capital One 360 Performance Savings

The 360 Performance Savings account from Capital One has several attractive features, such as a debit card and no limits on transfers. Additionally, no monthly fees are charged and no minimum balance is required.

Why Capital One didn’t make the cut: Capital One charges a $2 fee for withdrawals from non-Capital One ATMs; this is on top of any fee the ATM company may charge. We’re also not keen on the possibility of a credit report pull to open an account, as many other banks don’t require this.

Marcus by Goldman Sachs

A product of Goldman Sachs, the Marcus Online Savings account charges no fees and requires no minimum deposit to open.

Why Marcus by Goldman Sachs didn’t make the cut: Financial institutions with more standout features (e.g., higher APY, debit card) bumped Marcus by Goldman Sachs’ high-yield savings account out of our top picks.

Barclays Online Savings

The Barclays Online Savings account has no monthly fees and no minimum deposit to open. Additionally, Barclays does not set any limits on withdrawals or transfers.

Why Barclays didn’t make the cut: Barclays doesn’t offer a debit card or checks with its high-yield savings account. Additionally, there are other financial institutions with slightly higher APYs.

Synchrony High Yield Savings

Synchrony Bank, an online-only bank, offers a solid high-yield savings option. There’s no minimum deposit to open the account, and no monthly fees are charged.

Why Synchrony Bank didn’t make the cut: The APY Synchrony offers is on par with what’s currently available elsewhere, but other financial institutions are offering higher APYs.

High-Yield Savings Accounts Guide

High-yield savings accounts are relatively easy to understand, but they share many characteristics with other bank products. Read on to learn about high-yield savings accounts, from how they work to which features to look for when choosing an account.

What is a high-yield savings account?

High-yield savings accounts, also known as high-interest rate savings accounts, are bank accounts that earn you higher APY than a traditional savings account. When it comes to saving, a higher interest rate means a better return on your money.

How does a high-yield savings account work?

By offering a higher interest rate than traditional savings accounts, high-yield savings accounts help you grow your money in a shorter span of time. This type of account also limits the ways in which you can access your money, so you’re less likely to stray from your savings goals.

These limitations are not the same for every high-yield savings account and some online and traditional banks do allow you to order checks or request a debit card to allow easier access to your funds.

How to open a high-yield savings account

• Apply online, by phone or, if the bank has brick-and-mortar branches, in person

• Enter personal information, such as full name, address, driver’s license or government-issued ID, phone number and where your deposits will come from (e.g., transfers from other accounts, direct deposits, mobile deposits) as requested

• Agree to terms and conditions after reviewing; check for fees and specifics on rates

• Receive instant approval or, in some cases, wait for confirmation from the bank via email or regular mail

How to pick a high-yield savings account

Given that the main selling point of a high-yield savings account is its higher interest rate, a high APY should be the main factor to consider when shopping around.

However, like with any other type of bank account, you also want to make sure that there are few, if any, maintenance fees (to avoid cutting into your interest earnings).

FDIC or NCUA insurance is also a must, which protects your money if your bank or credit union should fail (bankruptcy or insolvency).

Annual Percentage Yield

The annual percentage yield (APY) is the calculation of how much interest is earned over a year, taking into account the effects of compound interest.

Because compound interest takes effect multiple times in a year (typically daily or monthly), the amounts earned through APY are slightly higher than the advertised interest rate. For example, a simple or nominal interest rate of 1% on a $1,000 balance would earn you $10 every year.

If you add monthly compounding interest — meaning the 1% interest applies every month instead of at the end of the year — your yearly return would be $10.05, giving you an effective APY of 1.005%.

APY rate stability

Typically, interest rates change depending on the federal funds rate set by the Federal Reserve. Banks use this to calculate the annual percentage yield (APY) for savings and investment products. When choosing a high-yield savings account, you want to find one that offers an APY greater than the national average 0.37% that you would earn in a standard savings account. Online banks and credit unions typically provide far higher interest rates on savings accounts than brick-and-mortar banks since they pay less overhead than banks with a physical branch.

Few to no administrative fees

High-yield savings accounts can come with monthly maintenance fees or requirements to maintain a minimum balance. Some accounts require you to maintain a minimum balance that would earn you at least one cent each month based on the APY. With other banks, you might not have to pay a monthly maintenance fee, but there may be additional fees such as ATM fees, overdrafts and wire transfer fees that you might need to pay.

FDIC/NCUA Insurance

Money in an online bank or any type of bank is secure as long as the bank is FDIC insured, meaning that the Federal Deposit Insurance Corporation backs it. Most high-yield savings accounts are FDIC-insured up to $250,000.

How much does a high-yield savings account earn?

True to their name, high-yield savings accounts have higher interest rates than traditional savings accounts. These rates are usually 10 to 20 times higher than the average rate for savings accounts.

What is the difference between a high-yield savings account and a money market account?

While high-yield savings accounts and money market accounts are both types of high-interest savings accounts with comparable rates, they have a few key differences. Check the table below to compare the common features of each. Some differences, however, will vary by bank.

Why open a high-yield savings account?

High-yield savings accounts are a great alternative to traditional savings accounts due to their higher interest rates. They’re particularly useful if you have short- to medium-term savings goals, such as saving for college, a new car, or a new house.

Of course, high-yield savings accounts can also serve as a replacement for a traditional savings account. Considering their higher interest rates, they’re an excellent tool for putting away any surplus cash you might not want in your checking account.

Why are compounding periods important?

The more often a company compounds interests and pays them to your account, the higher your earnings will be. Daily compounding will maximize your money more than monthly or quarterly compounding.

High-Yield Savings Account Glossary

• Annual Percentage Yield (APY) - APY is the effective rate of return on your investment after factoring in the effects of compound interest.

• Interest - Simply put, interest is the amount of money that a bank pays its customers for the privilege of holding their money. It is usually expressed as a percentage of the amount that each individual customer has deposited.

• Compound interest - You can think of compound interest as “interest on your interest.”

• Money market account - Money market accounts are similar to high-yield savings accounts, but aimed at businesses. They are more likely to allow for debit cards and checks, particularly for individual employees who need to access business funds regularly.

• ACH transfer - An ACH transfer is an electronic transfer of funds from one bank to another. The ACH stands for “automated clearing house,” referring to the network that manages these transfers.

• Savings account - A type of bank account with higher interest rates than a checking account. They’re designed to help you put away extra funds for emergencies or short-term purchase goals.

• High-yield savings account - A type of savings account with a higher interest rate than a traditional savings account. They’re meant to help you build funds for short- or medium-term purchase goals, such as a new car, college or even a new home.

• Checking account - A type of bank account designed for everyday spending. They allow for checks and debit cards. The interest rates offered by these accounts are typically the lowest.

Latest News About High-Yield Savings Accounts

The latest savings account rate cap issued by the FDIC stands at 5.58%. Accordingly, interest rates for high-yield savings accounts have gone up, with many financial institutions offering annual percentage yield rates of 4.50% and higher.

If you’re still on the fence about it, you can also read our article on why you should open a high-yield savings account sooner rather than later. Be sure to check out our guide to the best savings accounts, as rates have increased with these products as well.

How We Chose the Best High-Yield Savings Accounts

Competitive annual percentage yield rates

• Companies must offer competitive rates and have a solid history of high APY rates.

• The most competitive annual percentage yields for high-yield savings accounts are currently between 3% and 5%.

• Some banks were disqualified because of low rates.

Ease of use and accessibility

• User-friendly mobile app and easy-access online platforms

• Transparency with crucial information and terms and conditions

• Accounts with mobile accessibility were rated higher than those without

• Options to withdraw or deposit their money by electronic transfers, wire transfers, mailed checks or linking to external checking accounts

• ATM withdrawal options are a plus. Not all banks offer debit cards with high-yield savings accounts.

Maintenance fees or account balance requirements

It is not in your best interest to sign up with an institution that will charge a handful of fees. We prioritized companies with:

• No maintenance fees
• No minimum deposit requirements
• None or minimal balance fees
• None or low minimum balance requirements
• Free online transfers

Customer experience

We recognize that direct banking customers should be familiar with online and mobile platforms, but customer support must be readily available when needed. The best online savings account offered chat, phone, email support, and some even guaranteed 24/7 customer support.

Strong financial standing

Your financial institution of choice should have a strong financial rating from a reputable credit rating agency. S&P Global Ratings, Moody’s, and Fitch Group are known as The Big Three in the industry, and you can search their databases for information on the bank of your choice.

We require that any top pick includes “member FDIC” on its site to make it publicly known that it’s an insured bank or financial institution in accordance with the standards of the Federal Deposit Insurance Corporation (FDIC). The FDIC covers up to $250,000 per depositor, per ownership category, per FDIC-insured institution. For credit unions only, insurance by National Credit Union Administration (NCUA) is acceptable. The NCUA also covers up to $250,000 per depositor, per ownership category, per NCUA-insured institution.

Comparison to other banks and financial institutions

To best evaluate the quality of a high-yield savings account, we researched and compared accounts across a multitude of banks and financial institutions, such as Alliant Credit Union, Ally Bank, American Express National Bank, Axos, Bank of America, Barclays Online Savings, Bask Bank, Capital One, Chase Savings, CIBC U.S., Citi Bank, CIT Bank Savings Builder, Citizens Bank, Discover Online Savings Account, Emigrant Bank, First Citizens Bank, First Foundation Bank, First Internet Bank, LendingClub, Marcus by Goldman Sachs, Mph.bank, My Banking Direct, My Savings Direct, Nationwide, PenFed Credit Union, Primis, Quontic Bank, Regions Bank, Sallie Mae Bank, SoFi, Synchrony Bank, TIAA Bank, UFB Direct, USAA Bank, Varo, Vio Bank, Wealthfront, Wells Fargo and Western.

Summary of Money’s Best High-Yield Savings Accounts of June 2023

• Discover - Best High-Yield Savings Account Overall
• CIT Bank - Best High-Yield Savings Account with a Minimum Deposit
• mph.bank - Best Online Bank for High-Yield Savings Accounts
• Ally Bank - Best High-Yield Savings Account with Savings Tools
• My Banking Direct - Best Regional Bank for High-Yield Savings Accounts
• Varo - Best High-Yield Savings Account and Checking Combination